Corporate Liquidation (Q.No.

2)
……….Company
(Q.No.1) Liquidator’s Final Statement of Account
Receipts Amount Payments Amount

……….Company -To Assets realized 5,20,000 -By Secured creditors 80,000

Liquidator’s Final Statement of Account
Receipts Amount Payments Amount -To Share call money -By Liquidator’s remuneration
received (2,000 x 20) 40,000 -On Assets realized
-To Assets realized 6,50,000 -By Secured creditors 1,00,000 [5,20,000 x 2%] 10,400
-To Calls in arrears received 30,000 -On Unsecured creditors 3,600 14,000
-By Liquidation expenses 18,000
-By Preferential creditors 25,000
-By Liquidator’s remuneration
-On Assets realized -By Debenture holders 2,00,000
[6,50,000 x 2%] 13,000
-On Eq. shareholders 1,157 14,157 -By Unsecured creditors 1,20,000

-By Preferential creditors 40,000 -By Preference shareholders 1,00,000

-By Unsecured creditors 2,50,000 By Equity shareholders

(5,000 shares @ Rs.4.2each) 21,000
-By Preference shareholders 2,00,000 5,60,000 5,60,000

By Equity shareholders @ 57,843

Rs. 7.23 each W.N. (1) Amount available to unsecured creditors = Rs. 2,04,600
Liquidator’s Remuneration = 1,20,000 x 3 = Rs. 3,600
6,80,000 6,80,000 100

W.N. (1) Amount available to Eq. shareholders = Rs. 59,000

Liquidator’s Remuneration = 59,000 x 2 = Rs. 1,157
100 + 2
Remaining amount for Eq. shareholders = 59,000 - 1,157 = Rs. 57,843
 (Q.No.3) (Q.No.4)
……….Company ……….Company
Liquidator’s Final Statement of Account Liquidator’s Final Statement of Account
Receipts Amount Payments Amount Receipts Amount Payments Amount

-To Assets realized 4,70,000 -By Secured creditors 70,000 -To Assets realized 4,00,000 -By Secured creditors 50,000

-To Cash 30,000 -By Liquidator’s remuneration -To Calls in arrears -By Liquidation expenses 20,000
-On Amount realized received 20,000
-To Share call money [5,52,500 x 3%] 16,575 -By Liquidator’s remuneration
received (4,000 – 500) x 15 52,500 -On Unsecured creditors 4,000 20,575 -To Share call money -On Assets realized
received (4,000 x 10) 40,000 [4,00,000 x 2%] 8,000
-On Unsecured creditors 3,000 11,000
-By Debenture holders 1,00,000
(+) Interest 20,000 1,20,000 -By Preferential creditors 20,000

-By Unsecured creditors 2,00,000 -By Debenture holders 1,50,000

(+) Interest 6,000 1,56,000
-By Preference shareholders 1,41,925
-By Unsecured creditors 75,000

-By Calls in advance returned 30,000

5,52,500 5,52,500
-By Preference shareholders 98,000

W.N. (1) Amount available to unsecured creditors = Rs. 3,45,925 4,60,000 4,60,000
Liquidator’s Remuneration = 2,00,000 x 2 = Rs. 4,000
100
Liquidator’s Remuneration = Unsecured creditors x 4
( On Unsecured creditors) 100
Or, 3,000 = Unsecured creditors x 4
100
Unsecured creditors = 3,000 x 100 = Rs. 75,000
4
(Q.No.5) (Q.No.6)
……….Company ……….Company
Liquidator’s Final Statement of Account Liquidator’s Final Statement of Account
Receipts Amount Payments Amount Receipts Amount Payments Amount

-To Assets realized -By Secured creditors 70,000 -To Assets realized -By Secured creditors 40,000
(5,30,000 + 70,000) 6,00,000 Land 1,20,000
-By Legal expenses 20,000 Plant 40,000 -By Liquidator’s remuneration
Stock(80,000 x 90%) 72,000 -On Assets realized
-By Liquidator’s remuneration Debtors(30,000 x 90%) 27,000 2,59,000 (2,59,000 + 50,000) x 3% =9,270
-On Assets realized -On Eq. Shareholders 1,897 11,176
[6,00,000 x 4%] 24,000 To Bank balance 50,000
-On Unsecured creditors 5,600 29,600 -By Preferential creditors
(Salary payable) 10,000
-By Debenture holders 1,80,000
-By Unsecured creditors
-By Unsecured creditors (90,000 + 10,000) 1,00,000
(2,50,000 + 30,000) 2,80,000
-By Pref. shareholders 50,000
-By Preference shareholders 20,400 (+)Preference dividend 3,000 53,000

6,00,000 6,00,000 By Equity shareholders

-Share ‘A’ (20,000 x 4.1611) 83,222
-Share ‘B’ (10,000 x 1.1611) 11,611
[A] Secured Creditors Rs.1,00,000
3,09,000 3,09,000

Amount realized from sales Rs.70,000 Unrealized amount Rs.30,000

(Secured creditors) (Unsecured creditors) [A] Secured loan (secured by plant) Rs.50,000

[B] Amount available to unsecured creditors = Rs. 3,06,000 Amount realized from sales Rs.40,000 Unrealized amount Rs.10,000
Liquidator’s Remuneration = 2,80,000 x 2 = Rs. 5,600 (Secured creditors) (Unsecured creditors)
100
[B] Amount available to Eq. shareholders = Rs. 96,730
Liquidator’s Remuneration = 96,730 x 2 = Rs. 1,897
100 + 2
Remaining amount for Eq. shareholders = 96,730 - 1,897 = Rs. 94,833
Less : Return to share ‘A’ (20,000 x 3) = 60,000
Remaining amount for Share ‘A’ and ‘B’ = 34,833
(20,000 + 10,000)
= @ Rs. 1.1611